The craziest Bitcoin chart you will ever see
Before I get to the crazy part, just a quick daily review of Bitcoin’s price action. At the time of writing this article (1506 CST), Bitcoin is sitting right on a bullish break out zone: above the previous up-trend line that formed the low of the ‘Bitmex upgrade’ and right on the downtrend line of the most recent swing highs. There has been a considerable amount of trading being done to keep prices higher and creating quick zones of higher lows.
The triangle is bullish pennant is very indicative of a continuation pattern. If we were to scroll out, however, it would look like a long-running bearish flag. For the bullish breakout conditions, we need to consider not just the price action the volume action. In my opinion it has been fairly strong on the buy side – I’ve been observing the order books from various exchanges and there’s strong buying pressure here. On bear side we need to consider just one thing: flash sells. This is around the time of day when we see a massive sell candle appear out of nowhere right near an apex of bullish technical conditions. I would consider the probabilities of a flash sell very high, but a sustained down move I would consider unlikely given this current price action. But bull and bear traps abound in this market and in order to pull off a complete head and shoulder pattern, a bull trap is what’s needed for the bears.
72-degrees of Venus
Technical analysts these days are spoiled. There are a great many drawing tools and indicators that we no longer have to draw by hand or even calculate on screen and then plot by mouse. Some forms of technical analysis still require some good ole’ testing and research. Financial Astrology is one of those forms of technical analysis that requires some good ole’ testing and research. On Sunday, I was doing my analysis for the next week and I was reviewing some of my old notes and I came across some notes I took from a book by Larry Pesavento (A Trader’s Guide to Financial Astrology). He discussed some degrees for Venus that traders should check in the markets they trade. This struck me as odd because I don’t remember ever seeing anything in his writings that mentioned any single planet longitudinal position. He suggested traders look at the division of Venus at 72-degrees for their market because they often marked important price and time levels. What I found made me laugh because I’ve never seen anything so precise like this before.
What is astonishing is the accuracy of the positions of the 72-degree divisions that appear on important swing highs and lows. For many of those swings, the degree position is to the day. It’s fascinating. The author also suggested using the 36-degree divisions.
More exact swing highs and lows are found using the 36-degree levels. Again, I am flabbergasted by the accuracy shown here. I will continue to monitor this price action behavior moving on in the future to see if the live trading results coincide with this past price action.